China Aims for Record High Budget Deficit in 2025 📈
China plans to increase its budget deficit to a record 4% of GDP in 2025, up from the previously forecasted 3% for this year, in an effort to bolster its sluggish economy through a more proactive fiscal policy.
The projected increase in China's budget deficit to 4% of GDP in 2025 is a significant move that could have a positive impact on the investment portfolio. China's economy has been sluggish, and this fiscal stimulus measure is likely to provide a boost to economic growth, which could benefit the portfolio's exposure to the Chinese and global markets, such as the S&P 500, European market, and MSCI World. The additional expenditure, financed through the issuance of off-budget special bonds, could also support the portfolio's positions in Chinese and global equities.